Google Sends Valentine to Lonely Yahoo
ADOTAS – The slapped around and beleaguered Yahoo Inc. can finally dry its weepy eyes. It looks like Google Inc. will step up and extend its two-week search/ad deal with the Internet pioneer.
Yesterday, Google chief Eric Schmidt and co-founders Sergey Brin and Larry Page held a press roundtable at which they fielded questions about the potential partnership. (The deal would involve Yahoo outsourcing its business to Google to pump up search revenue).
“We have had a brilliant test,” Schmidt told reporters. “We like them very much.” During the meeting, without directly saying as much, Schmidt hinted that Google was exploring a long-term deal with Yahoo.
Schmidt also acknowledged the speculation that’s been swirling about the timing of their two-week trial (when Microsoft/Yahoo merger negotiations were reaching an extremely dramatic pitch in their seemingly endless psychodrama).
“Microsoft is a very large competitor over all facets of Google,” Schmidt said. “Their entries into search, advertising and initiatives in display are all competitive. Microsoft is well funded, they’re competitive and they’re smart.”
Many observers predicted that Google would abandon Yahoo once the Microhoo talks were called off. While it looks like that may not happen, Schmidt did say he was happy the deal didn’t go through, remarking that “it would be bad for the Internet” and hurt competition.
Speaking of competition, one possible roadblock to the Google/Yahoo deal would be anti-trust regulations. (Combined, the companies would have a roughly 80% share of the search market).
In other news, Google recently said it would consider running display ads alongside results of Web searches for images. The company is searching for new sources of ad revenue in addition to its current roster of text ads (growth is sluggish in that arena, to say the least). Google’s revenue still grew by 56% in 2007 – strong results, but weaker than the 73% rate of growth it saw in 2006.
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